Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, and Dindori Districts of

Executive Summary

1.0 EXECUTIVE SUMMARY

The Government of (GoI) has awarded the South Rewa Block SR-ONN- 2004/1 for oil-gas exploration to the consortium of Prize Petroleum Company Limited (PPCL-Operator) and Jaiprakash Associates Limited (JAL) under the New Exploration Licensing Policy Round–VI (NELP-VI) for prospecting, exploration and development under Production Sharing Contract (PSC).

Prize Petroleum Company Limited (PPCL) is the operator of exploration programme on behalf of the joint venture partners - Prize Petroleum Company Limited (10%), Jaiprakash Associates Limited (90%).

As per the Environment Impact Assessment (EIA) Notification dated 14 th September 2006, the proposed exploratory drilling project falls under ‘ Category A’ project. The draft EIA Report is prepared considering the TOR received from MoEF vide letter F.No. J-11011/600/2008-IA dated 9 th September, 2008.

The present project proposal deals with exploratory drilling of 10 wells in SR- ONN-2004/1 onshore block covering five districts, viz., , Sidhi, Umaria, Anuppur and Dindori districts of Madhya Pradesh. However, six tentative exploratory drilling well locations have been identified in so far, the exact location of which will depend on the 2-D and 3-D seismic study, which is under progress. The present EIA report describes the proposed project, its impacts and mitigation measures for the same.

The exploratory drilling operations are primarily aimed at knowing the reservior characteristics and will last for 45-60 days only. This temporary phase of operations will be followed by the development of the field depending on the results and finalising during the exploratory phase.

1.1 Project Description

1.1.1 Location Details of the Project

The present project proposal deals with exploratory drilling in SR-ONN-2004/1 onshore block covering five districts, viz., Shahdol, Sidhi, Umaria, Anuppur and Dindori districts of Madhya Pradesh. The block is spread over in an area of about 13277-km 2 and lies between 22 °54'47.39'' to 24 °15'12.97'' N latitudes and 81 °00'00'' to 82 °48'55.94'' E longitudes. The topo-map of the block area, depicting the salient features is shown in Figure-1. The details of environmental setting of the project block area are given below:

 The project block area covers 13277-km 2, covered in Sidhi, Umaria, Shahdol, Anuppur and Dindori districts of Madhya Pradesh;

 The project block area coordinates range between 22°54'47.39'' to 24 °15'12.97'' N latitudes and 81 °00'00'' to 82 °48'55.94'' E longitudes;

 Block area covered in Topo-sheet Nos 63-L/4, L/8, L/12, L/16, H/16, H/12, H/8, 64 E/2, E/3, E/4, E/5, E/6, E/7, E/8, E/9, E/10, E/11, E/12, E/13, E/14, E/15, E/16, F/9, F/13, I/1, I/3, I/4, I/5, I/9;

VIMTA Labs Limited, Hyderabad ES-1 Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, Anuppur and Dindori Districts of Madhya Pradesh

Executive Summary

 The Protected areas as per Wildlife Protection Act, 1972 covered in the project block area are Bandhavgarh National Park, covered in , Sanjay National Park in Sidhi district, and Sanjay Dubri Wildlife Sanctuary in Sidhi district;

 There are no protected areas as per Wildlife Protection Act, 1972 in Shahdol district;

 There are 118 Reserve Forests/Protected Forests covered in the study block area;

 The major water bodies in the project block area cover Son river and its tributaries and part of Govind Ballabh Pant Sagar reservoir;

 The project block is connected through National Highways- NH-75, NH-78 and Central Railway line (Katni-Singrauli link) and South-East Railway line (Katni branch) to rest of the region;

 Archaeologically important places within project block include the Virath temple and remains in Sohagpur in Shahdol district as per Archaeological Survey of India (ASI) records; and

 The block area falls under Seismic Zone –II and III as per IS: 1893 (Part-1) 2002

1.1.2 Importance of the Proposed Project

India is not among the major producers of crude oil, as it doesn’t have much oil reserves. Therefore, India generally depends on imports of crude oil from other countries. About 70 to 75% of oil and 65 to 70% of natural gas consumed in India is imported from other countries. In light of the heavy imbalance between production and demand, the Indian Government is encouraging exploration and production of oil and gas to a great extent. This would primarily allow India to tap its own resources there by reducing its import bill.

Discovery of viable hydrocarbon reserves in the state can boost the state’s economic development to a great extent. It would also catalyse influx of industries in the state. The proposed exploration project is thus of immense significance for the state and nation as a whole.

1.1.3 Details of Exploration Drilling Operation

It is proposed to drill exploratory and appraisal wells in the delineated area selected through seismic survey to identify and establish hydrocarbon potential. The proposed project intends to identify the presence of hydrocarbon prospects through exploratory drilling and to delineate and quantify hydrocarbon pools in discovered fields through appraisal drilling. The wells will be drilled upto a target depth of about 3000 m by using water-based drilling mud only.

VIMTA Labs Limited, Hyderabad ES-2 Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, Anuppur and Dindori Districts of Madhya Pradesh

Executive Summary

FIGURE-1 INDEX MAP OF SR-ONN-2004/1 BLOCK

VIMTA Labs Limited, Hyderabad ES-3 Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, Anuppur and Dindori Districts of Madhya Pradesh

Executive Summary

1.1.4 Infrastructure Requirement

Project Cost: Six tentative exploratory drilling wells have been identified in Shahdol district, Madhya Pradesh. The exact location of the wells will depend on the 2-D and 3-D seismic study, which is under progress. The estimated cost of the proposed exploration well drilling planned to be carried out at the tentative 6 locations would be around Rs. 150 Crores.

Land Requirement : Minimum land required at each well site during drilling will be 125-m x 125-m, i.e., 1.56-ha. Land requirement for the base camp will be about 0.5-ha. The land will be acquired on a temporary basis and adequate compensation as per the guidelines of local administration will be provided. The approximate area of well site is dependent on the type of drilling equipment deployed which in turn is dictated by the planned depth of drilling.

Power Requirement : The total power requirement at the drilling site and camp site will be 3400 KVA. The power requirement in the drilling site and the campsites will be catered through Diesel Generator (DG) sets. The power requirement will be met by 1 No of 400 KVA DG set at camp site and 3 Nos of 1000 KVA DG sets at drilling site.

Water Requirement : Water is basically required for preparing drilling mud and for meeting domestic needs of the campsite. Typically, the water consumption for each well ranges from 100-120 m3/day for a short period of 20 to 30 days. However, the drilling and domestic water requirement would depend on the time required to drill the well, which is primarily dependent on the proposed depth.

Man Power : The drill site construction would be done largely employing local labour. At each drill site construction, local employment will be generated for about 80-100 persons.

1.2 Description of the Environment

Environmental baseline data survey has been carried within the entire SR-ONN- 2004/1 block, during March 2008 to May 2008, covering pre-monsoon season.

1.2.1 Land Use Studies

The land use pattern of the total SR-ONN-2004/1 block has been studied using District Census Hand Books. It is observed that 33.68% of land falls under forest and 14.58% of the land falls under culturable waste. On the other hand, 2.39% of land comprises of the irrigated and 39.35% of area falls under unirrigated land. The area not available for cultivation, covering human settlements, wastelands, water bodies, infrastructure etc. is only about 10.00% of the total land.

1.2.2 Soil Quality

The soil samples were tested at 14 locations during pre-monsoon season covering various land uses. It has been observed that the pH of the soil ranged from 6.5 to 8.0. The electrical conductivity was observed to be in the range of 22 – 264 µS/cm. The phosphorus values ranged between 64.4 – 88.5 Kg/ha. The nitrogen

VIMTA Labs Limited, Hyderabad ES-4 Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, Anuppur and Dindori Districts of Madhya Pradesh

Executive Summary

values ranged between 18.8 - 92.4 Kg/ha. The potassium values ranged between 99 - 454 kg/ha. The percentage content of organic matter and Total iron values are ranged in between 0.18 – 0.95%, and 0.52 – 1.76% respectively.

1.2.3 Meteorology

On-site monitoring was undertaken at two locations, viz. Shahdol and Nigri for various meteorological variables in order to generate the site-specific data. The data generated is then compared with the meteorological data generated by nearest India Meteorological Department (IMD) stations located at Sidhi and Umaria. The meteorological data generated at both the monitoring sites when compared with the data recorded at nearest IMD stations, it is observed that the data generated at the site is broadly in comparison with regional meteorology, except for minor variations. The summary of climatic conditions as per monitored data at two locations, viz., Nigri and Shahdol during pre-monsoon season 2008 is given as under:

Parameter Nigri Shahdol Annual Mean Max Temp : 45.2 45.1 Annual Mean Min Temp : 17.2 18.2 Annual Average Rainfall : 26.5 9.5 Predominant Wind Direction : WNW NW Average Wind Speed : 1-19 km/hr 1-19 km/hr

1.2.4 Ambient Air Quality

To establish the baseline status of the ambient air quality in the study area, the air quality was monitored at 12 locations. The maximum value for TSPM is observed at Shahdol (AAQ1) station, as 162.0 µg/m 3 with the minimum value 3 observed at Tala (AQQ7) station as 62.0 µg/m during the study period. The SO 2 3 3 and NO x values ranged between 4.0-10.0 µg/m and 5.0-12.0 µg/m respectively. The levels of HC were observed to vary between 41 to 100 µg/m 3 in all monitoring locations. VOCs were observed to be <0.001 µg/m 3.

From the analysis of the monitored data, it infers that the air quality levels in the study area are of fairly good quality and comply with the National Ambient Air Quality Standards.

1.2.5 Water Quality

The baseline water quality status in the region is established by analyzing about 14 ground water samples and 3 surface water samples.

In ground water samples, the pH and conductivity vary from 6.4 – 8.2 and 54 -

1047 micromhos/cm. Total hardness and alkalinity expressed as CaCO 3 range between 19 - 483 mg/l and 15 - 325 mg/l respectively. Fluorides are found to be in the range of 0.2 – 0.6 mg/l. TDS and the heavy metal contents are found to be well within the limits.

In surface water samples, the pH range is 6.8 – 7.6. The TDS was observed in the range of 90 - 250 mg/l. DO was observed as 5.6 – 5.7 mg/l. BOD values were observed to be <3 mg/l. The heavy metal contents are below detectable limits. VIMTA Labs Limited, Hyderabad ES-5 Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, Anuppur and Dindori Districts of Madhya Pradesh

Executive Summary

The physico-chemical and biological analysis revealed that most of the parameters in ground water samples are well within the permissible limits as per IS: 10500.

1.2.6 Ambient Noise Levels

The noise monitoring has been conducted at 12 locations, covering residential, commercial and silence zones in the study area. A review of the data indicates that at all the locations, the noise level was found to be within the permissible limits of CPCB.

1.2.7 Ecological Environment

The forests in the block area include reserve/protected forests including degraded forests. A portion of Bandhavgarh National Park, Sanjay National Park and Sanjay Dubri Wildlife Sanctuary forms a part of the block area.

An ecological survey of the study area was conducted particularly with reference to the listing of species and assessment of the existing baseline ecological (Terrestrial and Aquatic ecosystem) conditions in the study area. It can be concluded that 2 species of Schedule-I, 6 species of Schedule-II, 2 species of Schedule-III and rest 33 species belong to Schedule-IV and V of Wildlife Protection Act, 1972 are recorded during study period.

1.2.8 Socio-Economic Environment

As per 2001 census records, the males constitute about 51.14% and females to 48.86% of the total population in the study area. The study area on an average has 955 females per 1000 males. In the study area, 7.75 % of the population belongs to Scheduled Castes (SC) and only 45.61 % to Scheduled Tribes (ST) as per 2001 census.

As per census records, the study area experiences an average literacy rate of 47.04 %. The main workers works out to be 29.06 % of the total population. The marginal workers and non-workers constitute to 14.94% and 56.01% of the total population respectively.

As per census records altogether the main workers works out to be 29.06 % of the total population. The marginal workers and non-workers constitute to 14.94% and 56.01% of the total population respectively.

The infrastructure and amenities available in the area denotes the economic well being of the region. The study area as a whole possesses poor to moderate level of infrastructural facilities.

1.3 Anticipated Environmental Impacts

The identification and assessment of impacts over the various environmental attributes in the region due to the proposed exploratory drilling activities in the project block have been discussed followed by mitigative measures and environmental management plan for the potential impacts due to the proposed project activities.

VIMTA Labs Limited, Hyderabad ES-6 Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, Anuppur and Dindori Districts of Madhya Pradesh

Executive Summary

The proposed exploratory drilling activities will last for 45-60 days and hence the impact due to the project are temporary and reversible in nature and will be localised.

1.3.1 Impact on Topography and Land Use

Considering the small foot print area required during the drilling, only marginal impact due to change in land use is anticipated and the topographical structure may change locally.

1.3.2 Impact on Climate

Impact on the climatic conditions from the drilling will not be significant. Considering the quantum of exit gas and the short duration of flow, the impact on the local or global climate will be insignificant.

1.3.3 Impact on Air Quality

The potential sources of air emissions at the well sites will be as follows:

• Dust from earth works (during approach road and site preparation); • Emissions from DG sets; • Emissions from possible flaring during well testing; and • Emissions from vehicles

During the short period of site preparation, mechanical shovels and earthmovers will be used for vegetation clearance, cut and fill and other site leveling activities. However, these activities will be only temporary and the impact to ambient air quality would be within the close proximity of well site.

The gaseous emissions from the DG set will be controlled by efficient combustion of fuel in the DG set. The flaring of oil and gas during well testing is a short duration activity (about 2 to 3 days). The dimensions of the typical flaring pit would be approximately 25 m x 10 m x 2 m deep will be used. The setting out of the flare pit will be done in a manner to direct the flame away from any pockets of cultivation / existing green cover. Wherever required, special precautions will be taken to minimize the impact on the local environment and habitat.

1.3.4 Impact on Surface Water and Groundwater Quality

Approximately 40-m3/day of waste water would be generated from the drilling operation. Water based non-toxic biodegradable fluids with inhibitive and encapsulative characteristics are proposed to be used as drilling mud for minimizing any long term impact on groundwater quality. Additionally, the drilling mud collection and recirculation pond is lined with impervious layer to prevent seepage and loss of drilling fluid into the subsoil. Further, proper casing installation and cementing of well will ensure least groundwater contact.

VIMTA Labs Limited, Hyderabad ES-7 Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, Anuppur and Dindori Districts of Madhya Pradesh

Executive Summary

1.3.5 Impact on Noise Levels

The maximum predicted noise level at about 100 m from the boundary of the drill site is about 52.0 dB(A). The ambient noise levels at most of the places in the region are within the CPCB standards. Since, the drilling operations last for only 45-60 days at each location, impact of the noise due to the proposed exploratory drilling will be insignificant on the community and will be minimized after 100 m from drilling well site boundary.

1.3.6 Ecological Impacts

Impact on the ecology of the study area will vary with the proximity of the habitats from the drilling locations. However, the impacts are of temporary nature, which will last for few days at each drill location during the exploratory drilling activities and will thus allow subsequent recovery after the activities stops.

1.3.7 Demography and Socio-Economics

Although the level of existing communications and support services in the area are considered adequate based on the population density, establishment of the proposed project would further strengthen the road network and access to some of the remote areas with all weather road would be of distinct beneficial impact. The overall impact is considered to be positive.

Impact on health due to emissions and noise from drilling activity has been assessed to be minimal. In addition employees working at the drill site would be provided protective devices like ear plugs/ear muffs for ensuring minimum impact on human health.

For most potential drilling sites in the exploration area, it should be possible to avoid impact on existing arable land. By following the compensation procedures and by observing common courtesy, impacts on existing use and benefit rights holders can be minimized.

1.4 Environment Management Plan

1.4.1 Removal of Equipment and Materials

After completion of the drilling activities, the well will be capped with a wellhead in place, but all other equipment and materials will be removed from the site. The site would be returned to its original form in most environment friendly manner.

All empty drums, wastes, used and unused drilling fluids, fuel and lubricants will be removed from the drilling site. Water supply and effluent discharge hoses and associated equipment will be removed. The access road(s) would be reinstated.

1.4.2 Decommissioning upon Abandonment

In the event that no economic quantities of hydrocarbons are found, a full abandonment plan will be implemented for the drilling sites in accordance with

VIMTA Labs Limited, Hyderabad ES-8 Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, Anuppur and Dindori Districts of Madhya Pradesh

Executive Summary

the applicable Indian petroleum regulations. The well will be capped and the land would be handed over back to the owners in the original form.

1.4.3 Atmospheric Emissions

The combustion of diesel for power generation for the drilling and campsite

operation result in atmospheric emissions of SO 2, NOx, CO, Particulates and Hydrocarbons. Flaring during production testing is of 3-4 days duration and atmospheric emissions are marginal.

There will be no sensitive receptors to the emissions of combustion products in the vicinity of the proposed drilling operations apart from the crew of the drilling rig. The impacts caused are therefore, considered to be negligible. Measures to ensure minimal impacts include appropriate management of power generation source to achieve fuel efficiency and therefore reduce emissions and use of low sulphur diesel oil. Environmental monitoring is proposed during drilling and well testing to ensure maximum combustion efficiency. Flaring towards any standing vegetation will be avoided. In case if it is inevitable, a suitable barrier will be erected to prevent any vegetation scorching due to direct heat radiation; and prior to flaring, the critical equipment will be thoroughly tested.

1.4.4 Noise Environment

The modeling results show that the noise levels will attenuate to below permissible levels within the drilling site boundary. The Generators will be properly enclosed and the exhausts will be provided with silencers.

1.4.5 Management of Drilling Wastes

The major waste product of a drilling operation is the generation of rock cuttings with residual mud adhering to the drill cuttings and spent drilling fluid. About 250 – 300 ton drill cuttings per well and 250-m3 spent drilling fluid would need to be disposed off.

PPCL proposes to use internationally followed methodologies while drilling with Water Based Muds (WBM). The mud will be reused after its separation from the cuttings. A mud mixing tank will be set up at the drilling site with a collection system so that any spill of chemicals will be collected.

The spilled oil may be reused in the mud preparation. The residual drilling fluids will be reused in the drilling campaign to the maximum extent and the drilling fluid which can not be further used will be discarded as per procedure.

1.4.6 Management of the Solid Wastes

Small amounts of solid wastes will be generated during normal operation at the drilling rig. The wastes will be disposed on compliance with local and national legislations. Spent waste oil will be stored in a secure paved area and disposed to MoEF/ MPPCB approved waste oil recyclers. Drill cuttings and sludge from drilling mud to be buried within the impervious lined pit and covered with soil as part of the site abandonment plan. Biodegradable waste arising from kitchen and

VIMTA Labs Limited, Hyderabad ES-9 Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, Anuppur and Dindori Districts of Madhya Pradesh

Executive Summary

canteen activities to be scientifically composted and the bio-manure so generated to be used for green belt development.

1.4.7 Management of Waste Disposal sites within Drill Site

The project proponent will dispose the drill cuttings, drill mud and waste water generated during the drilling operations into the lined pits of various sizes and undertaking plantation within the drill site particularly on the reclaimed pits will be undertaken.

1.5 Environmental Monitoring Program

A detailed post project monitoring in respect of air, water, soil, landuse, occupational noise, etc. to assess the changes has been evolved covering various phases of project advancement. A network of sampling locations around the drill site will be established. The monitoring will include the compliances to legal and statutory controls imposed on the operation as well as other corporate commitment to responsible environment management. Systems for monitoring resource inputs (energy, chemical use, water, raw materials), equipment and waste generation will also be set up. A detailed wastes management plan with monitoring programme will be in place during various phases of activity.

1.6 Risk Assessment and Disaster Management Plan

The hazard potential of oil and gas and estimation of consequences in case of their accidental release during drilling has been identified and risk assessment has been carried out to quantify the extent of damage and suggest recommendations for safety improvement for the proposed facilities. Risk mitigation measures based on MCA analysis and engineering judgments are incorporated in order to improve overall system safety and mitigate the effects of major accidents.

An effective Disaster Management Plan (DMP) to mitigate the risks involved has been prepared. This plan defines the responsibilities and resources available to respond to the different types of emergencies envisaged. Training exercises will be held to ensure that all personnel are familiar with their responsibilities and that communication links are functioning effectively.

1.7 Project Benefits

The proposed exploration program will establish hydrocarbons in the block. The development of the oil field will result in considerable growth of service sector and will also generate new industrial and business opportunities in the area. Small and medium scale industries may be developed as consequence.

The major benefits of the project include reduction of the oil import bill of the nation as well as reduction of the imbalance in oil production and consumption.

The commercial development will also lead to investment in Madhya Pradesh, bringing oil and gas revenues both to the State and to the Central Government.

VIMTA Labs Limited, Hyderabad ES-10 Environmental Impact Assessment for Exploratory Drilling in Onshore SR-ONN-2004/1 Block in South Rewa Basin falling in Sidhi, Umaria,

Shahdol, Anuppur and Dindori Districts of Madhya Pradesh

Executive Summary

The presence of PPCL in the region will substantially improves the socio-economic conditions of the region.

The proposed exploration drilling programme is expected to generate local employment in the order of 80 to 100 unskilled and semi- skilled people, for a period of approximately 2 months at each drilling site location. While this benefit is small by most standards, it is a significant employment opportunity in the block.

1.8 Administrative Aspects for Implementation of EMP

The basis of the operational philosophy is that the activities proposed in oil and gas processing shall be operated in complete compliance with all applicable Laws, Regulations, Standards and Permits, the Production Sharing Contract (PSC), PPCL corporate policies, procedures, specifications, rules, standards and guidelines. In order to achieve this, the proposed drilling sites will be maintained by technically qualified and experienced people. Detailed procedures and plans will be developed for each activity prior to operations start up. All persons on board the drilling rig will be an experienced crew with valid qualifications.

The HSE dept is the nodal agency to coordinate and provide necessary services on environmental issues during construction and operation of the project.

1.9 Conclusions

The proposed exploratory drilling project has certain level of marginal impacts on the local environment. However, the proposed project has significant beneficial impact/effects in terms of providing the employment opportunities and various CSR practices to be followed by PPCL. Growth and development, in harmony with the environment, has always been the approach of PPCL.

The conclusions of EIA are:

• The proposed project meets the compliance requirements of various environmental regulations;

• Adoption of environmental friendly Best Management Practices results in minimising the impacts on environment;

• Community impacts of the project will be beneficial, as the project will generate significant economic benefits for the region;

• The post drilling, commercial developmental activities of PPCL can reduce the import burdens of crude oil on the nation; and

• With the effective implementation of the Environment Management Plan (EMP) during the planning, design, construction and operation phases, the development and production project can proceed without significant negative impact on the environment.

VIMTA Labs Limited, Hyderabad ES-11